Procurement & Manufacturing

Procurement & Manufacturing - Procurement &...

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Procurement & Manufacturing
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Lecture objectives The quality imperative Procurement Manufacturing Lean and six sigma Logistical interfaces Assignment #1
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What are the dimensions of product quality? Performance How well the product performs in comparison to how it was designed to perform. Reliability Likelihood that the product will perform throughout its expected life. Durability The actual life expectancy of the product. Conformance Does the product meet its specifications as designed. Features What different functions or tasks can the product perform. Aesthetics Is the styling, color, workmanship pleasing to the customer. Serviceability What is the ease of fixing or repairing the product if it fails. Perceived Quality Based on customer’s experience before, during and after they purchase a product.
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Total Quality Management Total quality management (TQM) is a philosophy focused on meeting customer expectations with respect to all needs, across all company functions, and recognizing all customers, both internal and external. TQM’s basic conceptual elements are: Top Management commitment and support. Maintaining a customer focus in product, service, and process performance. Integrated operations within and between organizations. A commitment to continuous improvement.
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Quality Standards Management standards have been established by the International Organization for Standards (ISO) in both quality and environment. ISO was formed after World War II. Series of quality standards issued under name ISO 9000 (subsets—ISO 9001, ISO 9002,etc). ISO 14000—released in 1998 and deals with environmental standards. Companies get Certification when they conform to these standards.
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Why are ISO certified suppliers frequently preferred by buyers? They have to conform to an externally defined set of standards for quality and delivery of service. They are usually more open to sharing supply chain information. They welcome building relationships with their customers. They have formal processes in place for continual improvement. They are easier for procurement folks to initially qualify and periodically audit Certification is done by an external register agency. Firms have to be re-certified every three years.
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Procurement perspectives: Definitions Purchasing: The transactional function of buying products and services. In a business setting, this commonly involves the placement and processing of a purchase order. Procurement:
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This note was uploaded on 02/25/2012 for the course MGSC 1201 taught by Professor M during the Spring '12 term at Northeastern.

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Procurement & Manufacturing - Procurement &...

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